When PM Modi announced that Rs with the denomination of 500/- and 1000/- would cease to be the legal tender from 9th of Nov, the whole country was stunned. The high denomination notes of Rs 500 and Rs.1000 value were demonetized by the Govt. of India / RBI in order to curb black money, corruption, fake currency, funding to terrorist organization etc. Though most o us find this decision a draconian law still all of us are bound to face the consequences. The impact of Demonetization on the Indian Economy are Lower interest rates, Reduced the fiscal deficit, Lower inflation, Minimal impact on GDP, No Impact on Rupee-Dollar Exchange Rate and the huge impact of monetization on the education sector. If you run a local tutorial/coaching business, we are well aware of the current sting you are facing. With most fee payments in coaching institutions are in cash, sudden changes can lead to lots of issues and create problems that may affect your standard of education. But It would be wise to spend an equivalent gusto in devising ways out of the problem.
Rather than relying heavily on liquid cash, here are some alternatives to beat its need instead? With a plethora of virtual payment options out there, you can easily save yourself from these unavoidable payment hassles.
The steps are simple and all a onetime investment of time and money. Firstly, The institutes will have to establish a full proof system for relying upon and maintaining a robust check is for all digital transactions with the help of information technology (IT). This is an opportunity for the institutes to maximize the gains accruing due to shifting from cash to digital mode by adopting proper tools. This can be possible if institutes install proper software/mobile apps to be used by all stakeholders. the various payment modes you can opt for, as an efficient alternative to cash collection are:
1) POS Terminals (Debit/Credit card swiping machines): The POS (Point of Sale) terminal is nothing but the popular card swiping machine that you can find in various shops and malls. Usually, POS terminals, also known as EDC (Electronic Data Capture) machines are offered by the merchant teams of banks. Popular players in this field are SBI, ICICI and HDFC. Basically, to get your hands on a swiping machine from the bank, you will need to open a current account with the issuing bank. Once done, you can either rent or purchase these machines from the bank. While purchasing the machine will cost somewhere around Rs.7000, you can rent it at a much lesser rate, depending from bank to bank.
2) Mobile Wallet: Another very efficient method to collect fees/payments on a convenient basis is the use of Mobile wallets. A Mobile Wallet is a virtual platform that enables you to store the card and bank details on your phone, thus helping you to do away with the need of physically owning a swipe machine. Simply put, with the use of an M – Wallet, a student can pay his fees by transferring the money from his mobile wallet to yours in a hassle free manner. To set up this function, you will typically need to register yourself as a merchant by filling in a basic online application with the servicer provider of your choice. With companies such as Uber, Snapdeal and Pizzahut using mobile wallets, we see no reason why one should not tap into its benefits. Below you can find the enumerated details on three popular Mobile wallets providers in India are Paytm , Oxigen Wallet, MobiKwik etc.
3) UPI: Another lucrative system in the world of virtual payments is UPI. UPI stands for Unified.Payment Interface and is an initiative by the National Payments Corporation of India (NPCI). The mechanism behind the UPI involves the use of an app to transfer funds from one bank account to another, without the hassle of typing out the card details, the IFSC code, nd passwords. It uses your Aadhaar card credentials and mobile number as a sole identifier
Thus based on the nature and scale of your business, you can opt for either one of the above mentioned virtual payment mechanisms. While the POS terminal machine is more suitable for larger coaching institutes, Mobile wallets and UPI are an excellent start for sole tutors or comparatively smaller institutes.
Secondly, A lot of time will be saved in remittance of fees online, digitally or using mobile apps and software will take care of all such digital transactions and also send reminders to those who have not deposited the fees. This will also bring transparency to all financial dealings, save lots of tine and hassle free working environment, as the teachers & staff will not be bothered with have cash and record maintaining, rather teachers will be solely engaged in teaching which will chancel the capability of the students without bothering to other matters.
With students and parents becoming more tech-savy than ever, a move like this one will certainly be appreciated. Furthermore, with rising waves of technology, a substantially cashless economy may soon become the reality.
Therefore, taking proper steps towards the change it’s a total win-win situation for coaching institutions.